Germany mandates structured e-invoicing for B2B transactions

German B2B companies are facing mandatory requirements for electronic invoicing with structured data. According to Roland Franz of the tax consultancy Roland Franz & Partner, transition periods are nearing completion.

As of January 1, 2025, all domestic B2B companies must be able to receive and process e-invoices in formats such as XRechnung or ZUGFeRD. Standard PDF invoices are no longer sufficient for B2B transactions, and paper invoices require the recipient's consent, except for small amounts under 250 euros.

Starting January 1, 2027, a sending obligation will take effect. Most companies must be able to send e-invoices, though micro-enterprises with an annual turnover of up to 800,000 euros have an extension until December 31, 2027. From January 1, 2027, input tax deductions will no longer be permitted for paper or standard PDF invoices, potentially leading to significant tax back-payments during audits if non-compliant methods are used.